Terreno Realty Corporation has acquired a 28,000-square-foot warehouse building in Alexandria, Va., for $9 million, more than $300 per square foot.
Located on a 1.27-acre site at 619 S. Pickett Street, adjacent to the Van Dorn Street Metro station, the warehouse, which includes a 6,000-square-foot refrigeration area, was unoccupied at the time of the sale.
Lee & Associates represented the seller, DVPP, in the deal.
“DVPP originally purchased the property in 2005 and has been running their food distribution business there since then,” Josh Simon, president of Lee & Associates’ Washington, D.C. branch, told Commercial Observer. “They decided to sell simply because the market conditions for industrial properties are overheated, and they wanted to maximize value on the exit.”
Industrial vacancy rates are at less than 3 percent in Alexandria, so it was simply a supply and demand decision, Simon said.
“There’s not enough space for too many users,” he said. “Additionally, the cold food storage is a unique attribute that other buildings don’t typically have.”
The all-brick building features 26-foot ceiling heights, two outside loading docks and one drive-in bay, a truck court and a secured outdoor yard with vehicular parking..
Simon noted there was an “extremely high level of interest” in the building from both residential development companies and industrial users and investors.
Terreno Realty Corporation has engaged Cushman & Wakefield to oversee the marketing and leasing activities of the property. The company did not respond to requests for comment.
According to Simon, the new owner intends to maintain the building’s industrial application based on the continued high demand for this asset class throughout the Northern Virginia region.
Joining Simon in representing the seller was Pierson Kruetzer, principal at Lee & Associates-Washington, D.C.
Keith Loria can be reached at Kloria@commercialobserver.com.